Dollar inches higher as Trader wait on the Fed

The dollar was up this morning during Asian trade hours. The U.S currency was near a three week high against Japan’s yen and was trading higher against the euro. Traders are waiting on today’s monetary policy decision from the Federal Reserve, due during North American trade hours. Market watchers are expecting a 25 basis point rate hike and will be listening for cues on future hikes this year.

The Fed will end their two day meeting today and announce their decision by 6 pm GMT. They are expected to raise rates for the second time in 2018. They are on track for 3-4 rate hikes in 2018.

Traders will be listening closely. They would like to hear from the Fed that they will hike rates four times in 2018. They are on track for three rate hikes so far. The world’s largest economy has been growing steadily with the job’s market at full employment and wage growth adding to inflation.

Dollar and the Forex Markets take to the Sidelines this Morning

The U.S. dollar index, which tracks the U.S. currency against six other major currencies, was slightly higher. The dollar was up 0.03 percent to trade at 93.829. The USD rose 0.25 percent yesterday.

The USD/JPY Forex market was up 0.1 percent to fetch 110.455 yen. It had hit its highest level since May 23 at 110.55 earlier.

The EUR/USD Forex market was virtually flat trading at $1.1747. The euro lost 0.35 percent during overnight trade hours.

Also on the central bank schedule for this week, is the Bank of Japan and the European Central Bank. The ECB decision will help guide the single currency’s direction. They are widely expected to announce plan to unwind its bond purchasing program. This has boosted the euro, last week, to a three week high at $1.1840. The euro has been unable to hold onto those gains, mainly thanks too Italian political tensions.